FAQ

What do you do again and how much is it?

We provide trading suggestions. Our specialty is credit spreads. These spreads bring in a credit when executed. We then monitor the suggestions for our members.

Our fee is $97 per month billed automatically to your credit card or paypal account. We do offer discounts for longer term memberships.

There are no other charges. We do not charge you a percent of profits or any management fees.

Your only other costs would be your brokerage commissions, that you would pay to your stock broker.

How Do I Cancel a Membership?

You can cancel anytime. No long term contracts or commitments. Just takes a couple clicks.

1. Credit cards – If you joined by using your credit card, then you can click on the Cancel link in the members’ area. The Cancel link is blue and located on the Members Account Info page. or you can just email us. Please keep in mind that no refunds are given, so if you want to cancel, do so BEFORE your next renewal date.

2. Paypal – If you joined by using your Paypal account, simply log into your Paypal account and cancel the recurring subscription from there. That way, you will be sure it has been done. Please keep in mind that no refunds are given, so if you want to cancel, do so BEFORE your next renewal date.

What makes your service different?

We feel there are a number of reasons our service is unique.

1. We put our money were our mouths are. We are in every selection with real money.

2. We believe in keeping trading simple. We do not mess around with adjustments like rolling down or forward to another month. We also do not mess with iron condors.

3. The main problem with credit spreads is that one max loss can wipeout months of gains. That is why we don’t suffer large losses. We place stop losses at 25%. If a trade is down 25%, we exit and move on.

4. Our trade selection criteria is very stringent. We don’t just sell delta 10 strikes. Each trade has to pass a series of checks before we post it to the site.

Can you give me an example of a trade?

An example Trade Alert could look like this:

Today’s Date

Stock Symbol: XYZ

—————————————————————————–

Sell to Open March 275 Puts

Buy to Open March 270 Puts for a credit of .60 per spread.

——————————————————————————

This trade will expire on March 22. As long as XYZ is trading above 275 on expiration day, this trade will work.

Probability of expiring worthless for maximum gain is 84%.

Margin required: $440. The Margin is also the maximum you can lose on this trade.

Maximum Potential Gain: $60 or 13.6% (That is before commissions. Your commissions might be $2 for this trade.)

Stop loss: 25%. Exit the trade if the debit gets to 1.70

This is an example only. This was not an actual trade.

How many positions do you have at one time?

There will be between 2-5 positions a month. We try to add a position every week, but will not force it if the markets are not behaving or we do not find a suitable candidate. We are in each position anywhere from 1 to 5 weeks.

What broker do you recommend?

There are many great brokers out there. As long as they allow you to trade options and sell spreads you will be fine.

When choosing a broker, make sure they have what you need:

Good software with real time quotes and trade modeling ability

Low commissions

Competent and quick customer service

Good fills on trades

How much do commissions cost?

Brokers usually have 2 separate pricing strategies.

The first is a per option charge. So the broker might charge you $1 per option. Since a credit spread is comprised of two separate options (you sell one and you buy one) for each spread your total commission would be $2. This is fine for those traders who trade in smaller sizes.

The second method is a flat fee and a charge per option. So the broker might charge you $5 per trade and .25 per option. This method is better for traders who trade lots of contracts.

A rule of thumb is that your commissions should cost less than 6% of the total you can make on the trade.

Each broker charge something different so shop around for good rates. They will also negotiate with you if you are willing to deposit a large amount into your account or if you trade a lot of contracts.

Do you trade Weeklies or Minis?

Not at this time. All options are for monthly expiration and full size.

How and when are alerts sent?

When a new selection is made, we get executed in our real money account first to see what price is obtainable. We then email out the selection to all members. This is done during the trading day.

We try to enter trades on calm days so that everyone has a chance to get filled as a price similar to what we received. Even if you enter the trade the next day, you should get a similar credit.

How should I allocate funds?

Since we are not registered advisors, we cannot answer this question for you.

We can tell you that you should use sound money management.

For example: If you limit each trade to 10% of your account, and use a 25% stop loss, you should not lose more than 2.5% of your total account on any position.

What underlyings do you trade?

We hold positions in ETFs and optionable stocks. We stick to the most liquid ones.

You have probably heard of most of the underlyings we trade.

Some examples are: SPY, AAPL, IBM, GOOG, GS, IWM, and many more.

Can I do this if I have never traded options before?

Yes. Layup spreads are not that hard to understand. There is a lot of information available online about them. You should papertrade our suggestions for a few months before you risk any funds. This will give you practice on your broker’s trading platform and get several trades under your belt.

Many brokers also provide free education and training videos. Contact your broker for more info.

What kind of account do I need?

You will need an account that can not only trade options, but you must be able to sell credit spreads in your account. Please contact your broker to make sure you have the correct trading level.

Do you offer Autotrade?

Yes, autotrade is available at no additional charge. Please see our Autotrade Page for more details.

Do you guarantee I will make money?

Where there is reward, there is always risk. One balances the other. So no, we do not guarantee any such thing. Trading is full of probabilities.

How much can I lose?

It depends on how much you put at risk. Technically, even though we use stop losses, every position can lose 100%.

Common wisdom dictates “Don’t put all your eggs in one basket”.

How safe is this?

There is really no way to answer this. Safe compared to what?

There is risk involved. Losses have occurred and will happen in the future. Although past results cannot tell the future, our site’s track record is pretty impressive.

Can I do this in my IRA?

IRA rules allow it, but your broker also has to allow it. Please contact your broker to make sure. If they do not, find another one.

How Can I Sell an Option If I Don’t Own One?

Options are contracts. They do not exist until an agreement between a buyer and seller takes place. As option sellers, we tell our broker what we want to do, and if there is someone who wants to take the other side of our trade, we will get our trade filled.

Is there a certain date I should sign up to get the next position?

No. We add positions regularly. Today is a great day to get started.

What Is The Refund Policy?

All Sales Are Final. There are no refunds for membership. To avoid being billed for a future month, make sure you cancel before your renewal date. You can find your renewal date in the members area.

Contact Us

Option trading involves substantial risk and is not suitable for all investors. We cannot and will not guarantee that you will not lose money or that you will make money from the information found on this website and / or affiliated products / services. Past results do not guarantee future results. You can lose money trading options and the loss can be substantial. Losing trades can occur, have occurred in the past, and will occur in the future. Don't trade with money you can't afford to lose. Only risk capital should be invested since it is possible to lose all of your principal. Your use of this website and affiliated products / services is at your own risk. You should read "Characteristics and Risks of Standardized Options" to further understand the risks of trading options.
We are not licensed financial planners, financial advisors, stock brokers, investment brokers, or investment advisors. Before making any trades, check with a financial planner, investment advisor, tax advisor, or anyone else that controls your finances to make sure option trading is right for you. The information provided on this site should not be construed as individual investment advice. All information presented on this site is the opinion of the author only and is not a solicitation to buy, sell, or hold any investment or security of any kind.
Any issue or recommendation contained herein may not be suitable for all investors. Moreover, any issue discussed herein is not guaranteed or endorsed by Spill The Beans Research LLC, not FDIC insured and may lose value.
IMPORTANT NOTICE: These testimonials provide the perspective of individuals who are successful and/or enthusiastic about their experience(s). Testimonials are not representative of everyone's experience and provide information about the provider's experience(s) only as to that point in time in which they are provided. Although all testimonials are authentic and accurately represent the overall content of the testimonial, statements made in the testimonials have not been verified.
Unique experiences and past performances do not guarantee future results! Testimonials herein are unsolicited and received no compensation; certain accounts may have worse performance than that indicated. Trading stocks, futures, options and spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in options trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the options market. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission. Forex, Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.